Britain goes shopping and pushes the Pound higher

UK retail sales have soared. The release of July’s figures this morning, attributed to the sunny weather, have also cast their rays on the Pound which has pushed higher following its rally yesterday after the Bank of England minutes.

Pound Sterling – UK Markets

Retail sales rose by 1.1 percent in July, much higher than the forecast 0.4 percent and also outweighing June’s growth of 0.7 percent. The world cup and sunny weather have been attributed to causing Britons to flock to the shops with the largest sales coming from non-food based shops. The Pound therefore is staying in the spotlight with this news accompanied by an improvement in public sector net borrowing.

US Dollar – US Markets

The Dollar fell against the Pound yesterday as minutes from the Bank of England revealed that extending easing measures in the UK was not favored by any of the UK policy members. Jobless claims data is out today in the US. Jobless claims are expected to come in at 480000 slightly less than last week’s 484000 but data recently has had a tendency to disappoint and come in under expectations so this will be watched by markets.

Euro – European Markets

The Euro has fallen against both the US Dollar and the Pound over the past twenty four hours as well as eleven other of its major counterparts. Austerity measures in Greece are said to be pulling down the Euro as unemployment is reaching 70 percent in some areas. This morning saw Germany’s Producer Price Index which has pushed up and the trade balance from Switzerland which shows an increase in surplus.

Other Currencies – Highlights

Speculation is continuing regarding the Japanese Yen as an emergency meeting is said to be taking place in Tokyo today regarding monetary policy. This uncertain news has weakened the Yen as whether or not action will be taken to weaken the Yen remains to be seen. For a live quote or to tell us about your foreign exchange requirements, please call us on +44 (0)20 7740 0000